Precious metals have been lately rallying hard, turning the market upside down as they continue to project new highs ahead. In the middle of this, the US stock market narrative is now favoring copper as its new breakout asset, as its looming supply crunch and shortage dynamics continue to pave a new way for the asset. That being said, the smart money seems to be keenly watching this narrative playing out at large, betting on these three copper stocks that may soar high in the long run.

Also Read:Copper Market Shock: Global Inventories Hit Highest Level in 23 Years

Copper is emerging as the new breakout asset. This metal is capable of multiple industries, starting with electrical and automobiles. However, with the rise of artificial intelligence, the demand for data centers has been on a rapid rise, which is now making copper appear more lucrative than ever.

Per the expert Lukas Ekwueme, Amazon is also trying to stockpile the asset, signing a two-year deal to source copper.

“No copper = no AI. Amazon signed a 2-year supply contract to source copper. The project would produce 14 kt of copper cathode over 4 years. That’s not even enough to build one large data center. This has never been done before, but it shows that we have entered a new era. Access to resources > money to buy those resources. With copper deficits persisting, expect more industries to secure supplies directly, leaving less copper available for the rest of the world at a time when copper demand is off the charts. The age of copper is about to begin.”

No copper = no AI– Amazon signed a 2-year supply contract to source copper– The project would produce 14 kt of copper cathode over 4 years– That’s not even enough to build one large data centerThis has never been done before, but it shows that we have entered a new era.…pic.twitter.com/WJ7C1qHxeK

Per the latest report by theMotley Fool, three trending copper stocks to explore at the momentare BHP Group, Freeport-McMoRan, and Teck Resources.

BHP Group is an Australia-based natural resource producer, mining copper, iron ore, nickel, etc. The company operates several mines in South America and is responsible for mining 1.8M to 2M tonnes of copper.

Per TipRanks BHP stats, BHP is aiming to scale a new high of $68 within the next 12 months.

The second company on the list is Freeport-McMoRan, dubbed the world’s largest traded copper producer. The company seems to be amplifying operations to extract more natural earth produce and at the same time is working on improving the leaching process to extract more copper from the ore. This process may significantly bolster its copper output by nearly 800M pounds by 2030.

Source: Watcher Guru